The rise of PropTech: emerging industrial technologies and their impact on real estate
| Pages | 157-169 |
| Date | 16 November 2020 |
| Published date | 16 November 2020 |
| DOI | https://doi.org/10.1108/JPIF-08-2020-0090 |
| Subject Matter | Property management & built environment,Real estate & property,Property valuation & finance |
| Author | Christopher W. Starr,Jesse Saginor,Elaine Worzala |
The rise of PropTech: emerging
industrial technologies and their
impact on real estate
Christopher W. Starr
Supply Chain and Information Management, College of Charleston,
Charleston, South Carolina, USA
Jesse Saginor
Urban and Regional Planning, Florida Atlantic University,
Boca Raton, Florida, USA, and
Elaine Worzala
Carter Real Estate Center, College of Charleston, Charleston, South Carolina, USA
Abstract
Purpose –Industry 4.0 recognizes a broad set of technologies that rapidly redefine industry, including real
estate. These broad technologies include the Internet of things (IoT), cloud computing, decision automation,
machine learning and artificial intelligence. This paper explores applies Industry 4.0 to commercial real estate,
resulting in a framework defined here as Real Estate 4.0, a concept that encompasses fintech and proptech.
Design/methodology/approach –This research paper examines Industry 4.0 technology to construct a
framework for Real Estate 4.0. We also focus on how the COVID-19 pandemic is accelerating proptech,
particularly as it relates to getting employees back into their traditional work environments.
Findings –As a research paper, this is not a traditional research project with empirical findings. It is a primer
on how the rapidly changing technologies of Industry 4.0 are now disrupting and transforming real estate
today into what we are calling Real Estate 4.0.
Practical implications –Practitioner insight and future research are informed by a framework for Real
Estate 4.0 drawn from the technologies of Industry 4.0. Additional implications are outlined for practical,
systemic change as a result of the COVID-19 pandemic within the scope of Real Estate 4.0 technology.
Originality/value –This is a combined effort by experts in three contributing disciplines: systems science,
planning and real estate. Our intent is to provide a primer for those of us in the latter two fields so that we can
embrace the rapidly changing built environment landscape as it adjusts and adapts to a post COVID-19
environment that will be critical to maintain real estate investment values and enhance the real estate user’s
experience.
Keywords Real estate 4.0, Industry 4.0, Proptech, Fintech, Real estate technology, COVID-19 pandemic,
Technology disruption, Internet of things (IoT), Internet of everything (IoE), Real estate profession, Built
environment, Property
Paper type Research paper
1. Introduction
Industry 4.0 recognizes a new set of emerging, disruptive and maturing digital technologies
positioned to reshape and, in some cases, redefine business. Originally focused on
manufacturing processes and utilized by multinational corporations, the concepts
underlying Industry 4.0 are rapidly being adopted by business sectors beyond
manufacturing. Technologies such as the Internet of things (IoT), cloud computing,
decision automation, machine learning and artificial intelligence are no longer limited to
manufacturing, crosscutting industry verticals, including real estate. This paper explores the
implications of Industry 4.0 for commercial real estate, defined here as Real Estate 4.0. Key
Rise of
PropTech
157
This paper forms part of a special section “PropTech and Entrepreneurship - Innovation in Real Estate
II”, guest edited by Dr Larry Wofford, Dr David Wyman, Dr Elaine Worzala.
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1463-578X.htm
Received 17 August 2020
Revised 26 October 2020
Accepted 26 October 2020
Journal of Property Investment &
Finance
Vol. 39 No. 2, 2021
pp. 157-169
© Emerald Publishing Limited
1463-578X
DOI 10.1108/JPIF-08-2020-0090
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